What is a Credit Repair Company?

A credit repair company is by definition a company whose job is to bolster your credit rating through various means such as checking the accuracy of your credit report with the credit bureaus, taking care of credit report disputes, fixing your credit in the wake of bad debts and the like. To put it another way, this is a company that aids you in managing your finances.

What can a credit repair company can do for you?

You will find that a good number of people advocate the “do it yourself” credit score restoration method instead of availing the services of a trustworthy credit repair company. Is that better? That’s up to you to decide. These are the services a credit repair agency should offer you:

- checking your credit report for accuracy as per each credit bureau (there are three of them – Experian, TransUnion and Equifax)
- disputing inaccurate information on your report; and following up until they are completely removed from the credit report
- offering advice on the best course of action so you can raise your credit score within the shortest possible time frame
- counseling you on management of your finances so you will avoid falling into debt traps
- facilitating avenues that will enable you to earn your living again
- keep a close eye on the credit report from each of the three bureaus to catch any mistake that could negatively impact your credit score
- teaching you how to maintain a good credit-to-income ratio for best results on your credit score

What a credit repair specialist can not do for you?

A lot of people perceive a credit repair company like they would a genie in a magic lamp. But credit repair professionals cannot do everything. Here are some things that a credit repair agency can not do:

- settle trade lines disputes overnight – it requires at minimum 60 days
- repair credit reports overnight – it will take at minimum 6 months
- wipe off bad debts – it takes a minimum of 6 months
- change facts entered in your credit report – it will remove those which are genuinely errors
- wipe off the history of bankruptcy – it can only help you bolster your credit score as a bankruptcy record will stay on your record for a minimum 7 years
- bolster your credit score overnight – this is a gradual process and it will take at least 3-6 months

3 warning signs that point to a fraudulent credit repair company

While there are many reputable companies, there are nevertheless lots of scam out there who profit from the gullibility and desperation of those who suffer with bad credit to make a fast buck. These are three warning signs that should tell you that the credit repair company is fraudulent:

- fees are all collected upfront
- it promises you unbelievably fast results
- use of “shady” methods to accomplish credit restoration

Avoid such a company like the plague! Remember, a bad debt or even bankruptcy is not forever. But using illegal tactics to restore your credit can backfire in a terrible way. Never be tempted into accepting such “help” because such companies are scammers and will cause you untold grief.